About Hero FinCorp
Hero FinCorp Limited (HFCL) was founded in 1991 as Hero Honda FinLease Limited. It was named Hero FinCorp, when due to change of ownership, the name Hero Honda Motors became Hero MotoCorp.
HFCL is in the business of finance, leasing, bill discounting, and financing services per se. Its retail business is through 938 dealerships and presence at more than 4,000 touchpoints in 1,900 cities, towns, and villages. Loan against property, SME and corporate financing segment caters to customers from 50 locations, handling more than 800 applications per month.
Subsidiary – Hero Housing Finance Limited (HHFL)
A subsidiary, Hero Housing Finance Limited (HHFL), has also been set up by HFCL, which started lending in April 2018. HHFL provides home loans and loans against property throughout India. HHFL grew at a rapid pace and reached a loan book of ₹556.75 crore in FY19 itself. During this period, Hero FinCorp, through a rights issue, infused ₹200 crore into HHFL by acquiring 20 crore equity shares (₹10 each).
Fundamentals
Per Equity Share
Financial
P&L Statement
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Interest Earned | 3877 | 4241 | 5719 | 7479 |
| Other Income | 401 | 497 | 728 | 880 |
| Interest Expended | 1710 | 1678 | 2173 | 3097 |
| Operating Expenses | 1100 | 1498 | 2288 | 2513 |
| Provisions and contingencies | 1417 | 1840 | 1212 | 1722 |
| PAT | 51 | -191 | 479 | 637 |
| eps | 4.02 | -15.04 | 37.62 | 50.16 |
| Gross NPA | 7.4 | 7.9 | 5.37 | 4.02 |
| Net NPA | 4.61 | 4.63 | 2.79 | 2 |
| Financial Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Advances | 26194 | 31341 | 39871 | 49880 |
| Book Value | 391.1 | 375.35 | 411.85 | 453.94 |
| P / B | 2.94 | 3.06 | 3.04 | 3.91 |
| ROE (%) | 1.03 | -4.01 | 9.14 | 11.05 |
Balance Sheet
| Assets | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Fixed Assets | 93 | 92 | 111 | 181 |
| Cash and Balances | 1222 | 1038 | 790 | 158 |
| Investments | 1917 | 1172 | 1747 | 1896 |
| Advances | 26194 | 31341 | 39871 | 49880 |
| Other Assets | 570 | 756 | 932.31 | 1089 |
| Total Assets | 29996 | 34399 | 43451.31 | 53204 |
| Liabilities | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 127 | 127 | 127.31 | 127 |
| FV | 10 | 10 | 10 | 10 |
| Reserves | 4840 | 4640 | 5116 | 5638 |
| Borrowings | 23391 | 27875 | 33359 | 42544 |
| Deposits | 0 | 0 | 0 | 0 |
| Other Liabilities | 1628 | 1747 | 4849 | 4895 |
| Total Liabilities | 29996 | 34399 | 43451.31 | 53204 |
Cash-Flow Statement
| Cash-Flow Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| PBT (%) | 71 | -254 | 735 | 960 |
| OPBWC | 1589 | 1621 | 2278 | 3121 |
| Term Deposit | 0 | 0 | 0 | 0 |
| Change in Investment | 0 | 0 | 0 | 0 |
| Change in Advances | -3349 | -6987 | -9742 | -11581 |
| Change in Deposit | 0 | 0 | 0 | 0 |
| Other Changes | 78 | 62 | 676 | -503 |
| Working Capital Change | -3271 | -6925 | -9066 | -12084 |
| Cash Generated From Operations | -1682 | -5304 | -6788 | -8963 |
| Tax | 159 | 109 | 227 | 276 |
| Cash Flow From Operations | -1841 | -5413 | -7015 | -9239 |
| Purchase of PPE | -15 | -23 | -50 | -161 |
| Sale of PPE | 5 | 5 | 2.71 | 4 |
| Purchase of Investment | -27527 | -18773 | -17641 | -14832 |
| Sale of investments | 25735 | 19582 | 17163 | 14744 |
| Others | 48 | 39 | 68 | 115 |
| Cash flow from Investment | -1754 | 830 | -457.29 | -130 |
| Proceeds from Borrowing | 21384 | 21131 | 24202 | 29256 |
| Repayment of Borrowing | -19524 | -16759 | -19122 | -20410 |
| Dividend | -12 | -12 | 0 | -103 |
| Proceeds from Equity | 470 | 2 | 2000 | 0 |
| Others From Financing | 38 | -14 | 269 | -26 |
| Cash Flow from Financing | 2356 | 4348 | 7349 | 8717 |
| Net Cash Generated | -1239 | -235 | -123.29 | -652 |
| Cash at the Start | 2343 | 1106 | 874 | 750 |
| Cash at the End | 1104 | 871 | 750.71 | 98 |
